Home values increase by 6 percent on average in Bastrop County

Andy Sevilla @MrAndySevilla

Tuesday

Aug 14, 2018 at 12:01 AMSep 26, 2018 at 9:31 AM

Home values in Bastrop County rose by 6 percent on average in 2018, a trend held constant throughout most cities and school districts in the county with the exception of Smithville, which saw a 1.6 percent decrease in average home valuations, according to figures from the Bastrop Central Appraisal District.

The average home value in Smithville in 2017 was $166,148. This year, the average home value in the city is $163,485.

"We pushed values upward last year, especially in Smithville, because of the loss of school funding. We felt we had to ensure that we were at market value," said Richard Petree, Bastrop County chief appraiser. "When we were able to analyze by specific areas of towns and by type of construction, we found that we were too high on some homes, and lowering the value was appropriate."

The Smithville school district lost about $500,000 in school funding last year after property valuations came in below the state threshold for 2016. Per state law, appraisal districts must appraise properties at 95 percent of market value, or the state reduces its funding to local school districts. After several appeals, the Smithville school district’s property valuations came in about 94.3 percent of market value.

Because Smithville was out of compliance in 2014 and again in 2016, the school district lost some state funding for the 2017-18 school year.

"This market has been moving so rapidly that as an appraiser, I almost have to shoot above my target to be able to meet my target because the Austin market is moving so rapidly," Petree said last year.

Valuations in the Bastrop and Elgin school districts in 2016 also came in lower than the 95 percent of market value threshold state law requires — but because neither district was out of compliance within two years, they were provided a grace period before school funding was affected.

Petree said the appraisal district this year will complete onsite review of properties to accurately follow the market changes in the future without overshooting property values.

Rising home values

Aside from in Smithville, average home values across Bastrop County have risen by as much as 9 percent this year.

Petree said the primary driver of value increases is the migration of residents from Austin and Travis County moving into Bastrop County in search of affordable housing.

"Even though newer homes are around $140 per square foot, that continues to be a bargain compared to Austin housing," he said. "The areas of Bastrop and Elgin both are seeing new subdivisions being developed frequently."

Home valuations in Elgin rose on average by 9.02 percent, with the average home value estimated at $157,352 this year, up from $144,332 last year.

On the Bastrop County side of the Elgin school district — some of the district is in Travis County — home valuations on average rose by 6.69 percent. The average home value in the school district this year is $180,892, up from $169,548 last year.

Home values in Bastrop increased by 8.8 percent on average this year, with the average home value coming in at $203,371. Last year, the average home value in Bastrop was $186,919.

With the increase in property valuations, the average Bastrop homeowner will pay $93 more on their annual city property tax bill if the City Council approves its proposed 56.4 cent per $100 valuation ad valorem tax rate.

For property owners in Bastrop to not have a tax increase on their city bill, the City Council would have to adopt the effective rate — 55.34 cents per $100 valuation — which would impose the same total taxes as the previous year when compared to properties taxed in both years.

Home values in the Bastrop school district rose by 6.39 percent on average this year, with the average home value coming in at $191,358. The district’s average home value last year was $179,869.

The average homeowner in Bastrop County experienced a 5.96 percent increase on their home value this year, with the average home value coming in at $185,683, up from $175,231 last year.

The Smithville school district had the smallest increase in average home valuations this year — .63 percent. The average home’s value in the district is estimated at $166,703 this year, up from $165,653 last year.

AVERAGE HOME VALUES IN 2018

Bastrop — $203,371, up 8.8 percent

Bastrop school district — $191,358, up 6.39 percent

Elgin — $157,352, up 9.02 percent

Elgin school district — $180,892, up 6.69 percent

Smithville — $163,485, down 1.6 percent

Smithville school district — $166,703, up .63 percent

Bastrop County — $185,683, up 5.96 percent

Source: Bastrop Central Appraisal District

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